Buying Now As A First Time Buyer

Priceygirl

Hello there.

This is my first time on here.

I was wondering whether I could get some advice. My partner and I are first time buyers with a 10% deposit to put on a 2 bed property.

We have found that some lenders are now changing their products i.e. increasing their interest rate and also now requesting a 15% deposit.

I know no-one has a crystal ball as to what is going to happen at the moment with the recession, but it feels like the odds are going against us. As I didn’t experience the last recession I am not sure whether we should jump to buy now if things are going to get worse, or whether we should hold on to see if the banks will be given money to start lending again.

Your advice would be greatly appreciated.

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Priceygirl wrote: »

but it feels like the odds are going against us.

As a FTB the odds are swinging massively in your favour, you don't want to be a debt slave do you ?, keep saving and look at the market again in summer 2010.

robin_banks

keep saving, house prices aren't going to go up for at least 3 years.

penguine

House prices have always gone down in a recession. In the last recession they fell for several years, then remained level for several years before finally going back up again. This is likely to be a worse recession as we didn't have banks collapsing last time around. Don't worry, just keep saving and waiting and as prices continue to fall you're going to be better off.

pinkshoes

It really depends on where you live, as house prices and trends will vary from street to street, so no one can really answer your question unless they know your area...

It's important to not just look at house prices, but also interest rates, and mortgage deals. From what I've seen so far, although prices are dropping still in many areas, so are the good mortgage deals, and banks are asking for higher and higher deposits.

How long would it take you to save a 25% deposit?